ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Volcker Years at the Fed-I Hasty Embrace of Monetarism

There, as in all other capitalist countries, in the name of the public good and capitalist efficiency, bankruptcy laws provide for the insolvency of private enterprises, private individuals, public institutions, regional and local governments (New York City nearly went bankrupt), and even banks themselves. Both debtors and creditors are afforded the protection of their most essential interests by law and court, which (as under Chapter 11 of the United States bankruptcy code) also seek to enable the enterprises, institutions and individuals to make structural adjustments to re-establish themselves as going entities by freeing them from unbearable burdens. (New York City, the Chrysler Corporation, Rolls Royce, AEG Tele- funken, etc. and the Continental Illinois Bank and Trust Company among many others were all enabled again to set their houses in order). Why should this same legal practice in the public interest be denied to effectively insolvent 'sovereign

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